Resolute Mining interim earnings jump 39pc

Resolute Mining
, Australia’s second largest gold producer by volume, has increased interim earnings by 39 per cent after closing out its hedge book in October.

Perth-based Resolute posted a net profit after tax of $20.2 million for the six months to the end of December, up from $14.5 million in the previous corresponding period.

As a result of the hedge book closure, the company has gained more exposure to the strong gold spot price and revenue increased 32 per cent to $204.1 million.

Resolute produced 161,648 ounces of gold at a relatively high cash cost of $918 an ounce in the first half. The average price received per ounce of gold was $1273.

For the full year, the company expects to produce 330,000 ounces at a cash cost of $880 an ounce.

A scoping study on Resolute’s Ravenswood mine in Queensland has resulted in a 174 per cent increase in the reserve base at the mine to more than 1.5 million ounces, enough to support a further 10 years of production.

The company is aiming to build a similar mine life at Syama and believes it will then be able to support annual production of 350,000 to 400,000 ounces for the next decade.